An Agent’s Guide to Earning More with Living Benefit Riders
Agents who want to boost their bottom line need to look beyond traditional “death only” products. Living benefit life insurance products are outpacing traditional models, reshaping client conversations and agent commissions alike. These insurance add-ons are a savvy move for anyone serious about future-proofing their portfolio (and their income).
What Are Living Benefits?
Living benefit riders let clients tap into policy benefits if they face a qualifying event, such as cancer, heart attack, stroke, or chronic illness. They convert a life insurance contract into a powerful, flexible financial tool that covers both the unexpected and the inevitable.
Why Agents Should Offer Life Insurance With Living Benefits
Clients crave solutions that go beyond basic coverage. Major health events often leave financial devastation in their wake. A worrying number of uninsured adults (75%) under the age of 65 have even gone without care because of the cost. Even with solid health insurance, an out-of-pocket crisis costs can run from $50,000 to $150,000+.
The potential need for care is staggering. 1 in 2 men and 1 in 3 women get a cancer diagnosis over their lifetimes. Nearly 70% of people 65 and up will need some form of long-term care. With living benefits paying out while the policyholder is alive, they have access to real help when they truly need it.
Educating clients on living benefit riders stacks the value proposition. Now, the policy isn’t just a death benefit; it’s a safety net and income bridge for clients in crisis.
The Price of Peace of Mind
The average face value of individual life insurance policies jumped from $165,000 in 2013 to $206,000 in 2023. Selling policies with living benefit riders sets agents apart, widening their reach, creating a valued relationship that leads to additional opportunities.
When agents present the extra value built into whole life or universal life policies, clients often find that the substantial advantages of living benefits make their premium investment worthwhile. Living benefits give agents a unique market edge. Clients aren’t just buying coverage. They’re investing in protection that adapts to their life, not just waits for their death.
The Bottom Line
While life insurance sales are surging, the industry as a whole has experienced a 23% decline in individual investment portfolios over the past 15 years. Younger clients are demanding financial products that deliver value throughout their lives rather than solely at death. Traditional death benefit designs are losing relevance among younger consumers. This younger audience is seeking financial tools that support wellness, provide flexibility around life events, and offer aid during critical and chronic illness.
Additionally, advisors using living benefit riders regularly cross-sell annuities and deepen relationships with their wealth management or RIA partners. Staying visible as a life insurance agent/advisor specializing in living benefit solutions can also open the door to referrals from property and casualty agencies.
Living benefit riders make selling life insurance with living benefits more compelling and profitable. Agents who embrace this shift deliver meaningful impact to clients and carve out bigger revenue streams for themselves.
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